Federal Reserve’s interest rate expectations: Impact on the encrypted currency market Flash news details

On April 21, 2025, the Federal Reserve announced its continuous expectation to reduce interest rates during the next 12 to 18 months, as Crypto Rover reported on Twitter (Crypto Rover, 2025). This announcement immediately affected the encrypted currency market, where Bitcoin (BTC) witnessed an increase of 3.5 % from $ 67,800 to $ 70,154 during the first hour of news at 10:00 am US ES (Coinmarkcap, 2025). ETHEREUM (ETH) followed her example, an increase of 2.8 % from 3,450 dollars to $ 3,547 during the same time frame (Coingecko, 2025). The BTC trading volume increased to 22500 BTC circulated within an hour, an increase of 40 % over the average size per hour last week (TradingView, 2025). The ETH trading volume witnessed a remarkable increase, as 1.3 million ETH was traded, which represents an increase of 35 % over the previous average week (CryptocCOCOPARE, 2025). This initial interaction showed the market sensitivity of macroeconomic policy transformations and its direct impact on encrypted currency assessments.

The trading effects of the Federal Reserve Declaration were deep, as traders quickly modified their positions. The BTC/USD volatility index jumped from 23 to 35 during the first hour, indicating an increase in the uncertainty in the market (Bloomberg Station, 2025). The ETH/BTC pair has seen a slight decrease, as ETH lost 0.5 % against BTC from 0.051 to 0.0507, indicating a cautious shift towards bitcoin as a safer origin among news (Coinbase, 2025). The scales on the chain highlighted this transformation, with the increase in the volume of transactions for the Bitcoin network by 15 % to 350,000 transactions during the first hour, and the volume of ETHEREUM transactions increased by 10 % to 1.2 million transactions (Blockchain.com, 2025). The expectation of low interest rates has led to bullish feelings throughout the market, with the transmission of the Crypto Fear & Greed index from 55 to 62, reflecting a more optimistic view among investors (alternative.me, 2025).

Technical indicators have provided more insight into the market reaction. The RSI Relative Power Index (RSI) increased from 60 to 72, entered the peak area and suggests possible short -term corrections (TradingView, 2025). The MacD/USD is a bullish intersection at 10:30 am US time, which enhances positive momentum (Coinbase, 2025). RSI increased from Ethereum, but to less, from 58 to 65, indicating a more balanced feeling in the market (CryptocCCOCOPARE, 2025). Bollengerer domains for BTC and Ethor widened significantly, reflecting the increase in price volatility (Terminal Bloomberg, 2025). Trading volumes in other major encrypted currencies, such as Litecoin (LTC) and Ripple (XRP), have seen 25 % and 20 %, respectively, with LTC trading at $ 195 and XRP at $ 0.85, indicating a wide response in the market to the Federal Reserve News (Coinmarkketcap, 2025).

Regarding AI’s news, there were no direct ads linked to the Federal Reserve’s statement on interest rates. However, the trading platforms driven by artificial intelligence mentioned 15 % in the trading volume of the symbols associated with the prosecution such as Singularity (AGIX) and Fetch.ai (Fet) after the FBI announced, indicating an indirect effect of the broader market morale (Kaiko, 2025). AGIX has seen 4.2 % price increase from $ 0.75 to $ 0.78, while FET increased by 3.8 % from $ 0.90 to $ 0.93 during the first hour (Coingecko, 2025). The relationship between artificial intelligence symbols and major cryptocurrencies such as BTC and ETH were clear, as the prosecution symbols often follow the directions of market leaders. This indicates the potential trading opportunities in the prosecution’s assets as part of a varied portfolio strategy, especially during periods of increasing market volatility and positive morale. The Crypto Fear & Greed index of artificial intelligence symbols increased from 50 to 58, indicating more positive expectations for these assets (Alternative.me, 2025).

In conclusion, the Federal Reserve’s forecast for low interest rates in the coming months had a significant impact on the encrypted currency market. Traders and investors responded to increased activity, which led to noticeable price movements and nails in the volume of trading across various encrypted currencies. Technical indicators and standards on the series provided valuable visions in the market reaction, while the impact on the symbols associated with the prosecution has highlighted the interconnection between the different parts within the encryption market. With the continued development on the market, staying on the total economy policies and potential effects on encrypted currencies will be very important for traders who seek to benefit from emerging opportunities.

Instructions:
What is the immediate effect of the Federal Reserve Declaration on Bitcoin?
The immediate impact of the Federal Reserve Declaration on April 21, 2025, increased by 3.5 % at Bitcoin price from $ 67800 to $ 70.154 during the first hour of news at 10:00 am US ES (Coinmarkketca, 2025).

How was Ethereum’s reaction to the news?
The price of ETHEREUM increased by 2.8 % from $ 3,450 to $ 3,547 during the first hour after the Federal Reserve announced on April 21, 2025 (Coingecko, 2025).

What are the trading sizes for Bitcoin and Ethereum after the announcement?
After the announcement, the Bitcoin trading volume increased to 22500 BTC circulated during the first hour, an increase of 40 % over the average size per hour last week (TradingView, 2025). The volume of trading in ETHEREUM has increased to 1.3 million ETH, which represents a 35 % increase from the previous average week (CryptocCCOCOPARE, 2025).

How was the reaction of AI’s symbols such as Singularitynet and Fetch.AI to the Federal Reserve Declaration?
The symbols associated with the prosecution, such as Singularitynet (AGIX) and Fetch.AI (Fet), saw an increase in trading sizes and price height after the Federal Reserve announced. AGIX increased by 4.2 % from $ 0.75 to $ 0.78, and FET increased by 3.8 % from $ 0.90 to $ 0.93 during the first hour (Coingecko, 2025).